British National Hong Kong based Investor looking to retire in France

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hufhouseinvestor
Posts: 2
Joined: Thu Feb 23, 2017 7:27 pm

British National Hong Kong based Investor looking to retire in France

Post by hufhouseinvestor » Fri Feb 24, 2017 10:09 am

I am a 50 year old British national with a 45 year old wife and a ten year old son. We live in Hong Kong and own 2 properties: one in HK, bought last year on a 15 year mortgage (which is rented out) and one in UK (also rented out) which will be paid off in 5 years. Both properties are intended to provide an income in retirement. We cannot afford to buy the kind of property we would like to live in here in Hong Kong, so we rent our property.

Our objective is to buy a property outright (i.e. no mortgage) in France in 10 years time (my wife is a French national). The aim is to build a portfolio that will return at least 6% compound interest.

We intend to start our plan with a lump sum by withdrawing our funds from a Standard Life portfolio set up by our independent financial advisor (if only I knew then what I know now!!!), which is worth about 60,000 Euros.

We will also make regular monthly contributions

As we will be buying our property in France, we will therefore be converting our $HKD into Euros every time we buy.

I have decided on the following ETFs:

35% Ishares Euro Govt Bond (IBGS) (Amsterdam Euronext) Expense ratio 0.20%
35% iShares Core MSCI World UCITS ETF USD Acc
20% iShares MSCI Europe UCITS ETF (IMEU):
10% iShares Core MSCI Emerging Mkts (EMIM) (Amsterdam Euronext) Expense ratio 0.25%


My questions are:
  • 1 Does anyone have any comments / advice concerning the above selection?

    2 Does anyone have any advice regarding the absence of small caps from my proposed portfolio?

    3 Does anyone have any input regarding the fact that we live / earn our money in Hong Kong (for the next 10 years) but intend to use the proceeds of our plan to buy a house / pay future bills in France when we retire?

    4 Finally, although the idea of timing the market is the antithesis of Boglehead philosophy, does anyone have any advice about withdrawing my lump sum from Standard Life and investing it in the above portfolio. I have been scarred by my first foray into investing in 1999 when I bought a UK FTSE tracker at the height of the market and waited 10 years for it to return a profit… I am tempted to withdraw now and wait for the market to crash….
I look forward to and would appreciate any feedback…

Thanks!

gkaplan
Posts: 7034
Joined: Sat Mar 03, 2007 8:34 pm
Location: Portland, Oregon

Re: British National Hong Kong based Investor looking to retire in France

Post by gkaplan » Fri Feb 24, 2017 9:35 pm

I can't help you, but I'm giving this a bump for those to see who can help.
Gordon

finite_difference
Posts: 1089
Joined: Thu Jul 09, 2015 7:00 pm

Re: British National Hong Kong based Investor looking to retire in France

Post by finite_difference » Sat Feb 25, 2017 2:50 pm

I think it's always good to have a plan, even though plans can always change of course.

I don't think you are providing enough information to get help on your overall goal of retiring to France in a paid for house.

-How much net income will your two rental properties generate?
-How much is the house in France?
-What will your net expenses be when you retire?
-What will your net income be?
-How difficult will it be for you to be a landlord in two different countries? Is it better to sell the properties and invest the money?

As long as your net income exceeds your net expenses, then you are good :) Typically on here the attitude is conservative so a portfolio can be withdrawn at around 3% safely. So $100k would provide $3k annually in income.

I would say though that as long as you are diversified and investing in the 3-fund portfolio with an AA that is comfortable, then just lump sum it or DCA it over a few months if that makes you feel better.
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

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